Abstract

The issue explored in this research stems from the significant events of 2024, which marked a historic turning point in the trajectory of digital currencies, most notably the inclusion of Bitcoin in an Exchange-Traded Fund (ETF). This development opened the door wide for institutional investors to enter this emerging market, resulting in a noticeable increase in trading volumes and a higher level of public acceptance of these currencies.
Digital currencies are a form of cryptocurrency, although some distinguish between the two. Instead of printing money, central banks issue digital currencies that can be widely accessed, making digital transactions and transfers simpler. In contrast to cryptocurrencies like Bitcoin, central bank digital currencies (CBDCs) are backed by central banks and essentially represent a digital version of a country's fiat currency.
Consequently, nearly all countries are exploring the potential use of CBDCs. Some have already implemented them—for example, China has launched its digital yuan, which is now used by over 260 million users. This transformation could offer significant improvements to the current financial system by avoiding high fees and the inefficiencies associated with transferring money, especially across borders.